Drilling Expanding Size Of Pad Zone

WINNEMUCCA, NV - Paramount Gold and Silver Corp. reported that new core drilling on its 100%-owned Sleeper Gold Project in Nevada is expanding the size of the PAD zone discovered last year. This drilling is part of a new program to enhance the already robust economics of the project`s recently completed Preliminary Economic Assessment (PEA) released on September 13, 2012. The PEA predicts a 17 year operation with estimated average annual gold production of 172,000 ounces, a pre-tax NPV of US$695 million at a 5% discount rate and an IRR of 26.8%, all at a $1384 gold price.

Shallow drilling in the northeast portion of the Sleeper mine site under the original heap leach pad returned near-surface intercepts of 26.06 meters grading 0.59 Au g/T and 41.15 meters grading 0.61Au g/T, well above the PEA cut-off grade. This material is within easy reach of the PEA`s pit design at a low strip ratio. The PAD zone is now thought to connect to the Facility zone to the south. The PEA recommends that a portion of the old heap leach pad be moved to extract mineralized material from the Facility zone, opening up the PAD zone for exploitation without substantial additional capital costs.

Additional drilling of the south extension of the Sleeper mine site also returned mineralized intercepts with high silver values of up to 73 g/T.

Paramount's CEO Christopher Crupi commented: With the successful completion of the Sleeper PEA, we are now working to optimize the project`s economics by adding close-in resources at a higher average grade. One core rig is focused on targets in the vicinity of the original Sleeper mine site to find satellite deposits. We also have a reverse circulation rig drilling at the recently acquired MIMI claims, located south of Sleeper towards Newmont's Sandman project, where our geologists have defined several priority targets with the potential to discover a high grade deposit similar to the original Sleeper mine.

The company's address is 665 Anderson Street, Winnemucca, NV 89445, (775)625-3600.